The manufacturers post (or factory) is between the dwarves castle and the village that has been over run by demons, next to the inn/tavern that has the beer problem. You must clear all of the npc's (bad guys) between the castle and the factory or they will attack the owner and the quest will fail.
I usually skip that quest until i have cleared the area between of all npc's first, then go back and talk to the owner to activate the quest. Once you activate the quest, more patrols will appear so make sure you stay in front of him so that he doesn't get attacked.
There are about 3~4 patrols so if you find yourself low on mana, you can wait at a narrow area of the path so he can't get past you and die.
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